From the LA Auto Show
Aston Martin (OTCMKT:ARGGY) which has seen its share price plunge this year as sales failed to meet expectations after a stock market flotation, launched its 1st SUV (sport utility vehicle) Wednesday, hoping for a turnaround in fortunes.
The sports car maker, famed for being fictional agent James Bond’s car of choice, has gone bankrupt 7X in its 106-year history and has had multiple owners over the last century including Ford (NYSE:F).
Now largely owned by Kuwaiti and Italian private equity groups, Aston listed in October last year at GBP 19/share but that has since plunged by around 75%, hit most recently by falling demand in Europe and for its Vantage model.
The firm, which reported a pre-tax loss of $118-M in the 1st 9 months of the year, has ploughed money into a new factory in Wales which will build the new DBX SUV model from next year.
“We’re essentially holding the cost of a complete factory right now without the benefit of the revenues coming in … so from that point of view of course it’s a really important model,” CEO Andy Palmer said earlier this month.
Aston hopes to encourage more women buyers with its new offering and has received input from a female advisory on the choice of certain features such as separate central arm rests and the design of the glovebox.
The 1st trial build of the DBX has been completed with production due in Q-2 of Y 2020 which the company hopes will contribute to a boost to its output, alongside sports cars made at its southern English Gaydon facility.
“If our volumes are slightly north of 6,000 this year, obviously you’re adding another ultimately 4 or 5,000 so it’s a big chunk of volume for us,” said CEO Palmer.
HeffX-LTN’s overall technical analysis for ARGGY is Neutral to Bearish in here.